Style Outperformer:
Sector Outperformers:
- 1) Software +1.56% 2) REITs +.57% 3) Utilities +.42%
Stocks Rising on Unusual Volume:
- MPWR, ZINC, CTCT, DECK, AMZN, SPNC, BCOV, AFOP, ETN, AVY, WOOF, WETF, MCK, MCRS, MKTO, QLGC, ESI, MXIM, CTCT, FLS, MSFT, GNRC, THRX, CLF and ALXN
Stocks With Unusual Call Option Activity:
- 1) XCO 2) DECK 3) QLIK 4) ESRX 5) MCK
Stocks With Most Positive News Mentions:
- 1) MSFT 2) BA 3) NOV 4) GOOG 5) CLF
Charts:
Night Trading
- Asian equity indices are -1.0% to unch. on average.
- Asia Ex-Japan Investment Grade CDS Index 135.0 +1.0 basis point.
- Asia Pacific Sovereign CDS Index 100.75 -1.0 basis point.
- NASDAQ 100 futures +.07%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- Durable Goods Orders for September are estimated to rise +2.3% versus a +.1% gain in August.
- Durables Ex Transports for September are estimated to rise +.5% versus a -.1% decline in August.
- Cap Goods Orders Non-defense Ex Air for September are estimated to rise +1.0% versus a +1.5% gain in August.
9:55 am EST
- Final Univ. of Mich. Consumer Confidence for October is estimated to fall to 75.0 versus a prior estimate of 75.2.
10:00 am EST
- Wholesale Inventories for August are estimated to rise +.3% versus a +.1% gain in July.
- Wholesale Trade Sales for August are estimated to rise +.3% versus a +.1% gain in July.
Upcoming Splits
Other Potential Market Movers
- The G7 meeting and UK GDP report could also impact trading today.
BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and industrial shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 50% net long heading into the day.
Broad Equity Market Tone:
- Advance/Decline Line: Higher
- Sector Performance: Mixed
- Volume: Slightly Below Average
- Market Leading Stocks: Performing In Line
Equity Investor Angst:
- Volatility(VIX) 13.20 -1.64%
- Euro/Yen Carry Return Index 140.02 +.09%
- Emerging Markets Currency Volatility(VXY) 8.33 -.24%
- S&P 500 Implied Correlation 36.79 -.49%
- ISE Sentiment Index 65.0 -39.25%
- Total Put/Call .78 -9.30%
Credit Investor Angst:
- North American Investment Grade CDS Index 71.95 -.02%
- European Financial Sector CDS Index 122.61 +1.99%
- Western Europe Sovereign Debt CDS Index 70.0 -1.03%
- Emerging Market CDS Index 261.08 +.79%
- 2-Year Swap Spread 13.25 unch.
- 3-Month EUR/USD Cross-Currency Basis Swap -3.25 +1.25 basis points
Economic Gauges:
- 3-Month T-Bill Yield .03% unch.
- Yield Curve 221.0 +2 basis points
- China Import Iron Ore Spot $133.50/Metric Tonne +.23%
- Citi US Economic Surprise Index 17.10 -1.1 points
- Citi Emerging Markets Economic Surprise Index -6.40 +2.7 points
- 10-Year TIPS Spread 2.17 +1 basis point
Overseas Futures:
- Nikkei Futures: Indicating -31 open in Japan
- DAX Futures: Indicating -1 open in Germany
Portfolio:
- Slightly Higher: On gains in my biotech/retail sector longs
- Disclosed Trades: Covered some of my (IWM)/(QQQ) hedges, then added them back
- Market Exposure: 50% Net Long
Bloomberg
- Euro-Area Services, Manufacturing Unexpectedly Slow. Euro-area services and manufacturing
output unexpectedly slowed in October as the recovery in the
currency bloc struggled to gain momentum. A composite index based on a
survey of purchasing managers in both industries declined to 51.5 this
month from 52.2 in September, London-based Markit Economics said today.
Economists had forecast the indicator would rise to 52.4, according to the median of 24 estimates in a Bloomberg News survey.
- European Stocks Advance as ABB, Daimler Gain on Earnings.
European stocks advanced as companies from ABB (ABBN) Ltd. to Daimler
AG posted earnings that beat estimates, while a report showed China’s
manufacturing strengthened this month more than forecast. ABB climbed 5
percent after saying profit rose 10 percent amid increasing orders in
China and Germany. Daimler added 3.3 percent after also saying sales of
its CLA compact coupe and
upgraded E-Class sedan rose. Celesio AG jumped 5.4 percent after
McKesson Corp. agreed to buy the German drug wholesaler for 3.9
billion euros ($5.4 billion). Credit Suisse Group AG lost 2.8
percent after posting profit that missed analysts’ estimates. The Stoxx Europe 600 Index increased 0.4 percent to 320.38 at the close of trading in London.
- Fed to Propose Banks Hold Ready Funds for 30-Day Credit Drought. Banks
would have to hold enough easy-to-sell assets to survive a 30-day
credit drought under a rule to be proposed today by the Federal Reserve
that may have the greatest effect on banks with big trading
operations such as JPMorgan Chase & Co. (JPM) and Goldman Sachs
Group Inc. (GS) The demand for 30 days of liquidity is intended to
satisfy global Basel III accords for strengthening the financial system.
Increasing the banks’ liquid assets is meant to make them less
vulnerable in a crisis like the one that struck in 2008.
- U.S. Mortgage Rates Fall to a Four-Month Low.
U.S. mortgage rates fell to a four-month low after a
weaker-than-expected jobs report drove investors to the safety of the
government bonds that guide borrowing costs. The average rate for a
30-year fixed mortgage dropped to 4.13 percent the week ended today from
4.28 percent, Freddie Mac said in a statement. The average 15-year rate
declined to 3.24
percent, from 3.33 percent.
- Consumer Confidence in U.S. Falls to Eight-Month Low: Economy.
Consumer confidence sank last week to the lowest level in eight months
as Americans grew more concerned the budget standoff in Washington hurt
the world’s
largest economy. The Bloomberg Consumer Comfort Index declined
to minus 36.1 in the period ended Oct. 20, the lowest since February,
from minus 34.1. The report also showed more households were pessimistic
about the economy than at any time in the past year even as lawmakers
approved a deal that ended the partial shutdown of federal agencies.
CNBC:
Zero Hedge:
Business Insider:
Reuters:
Telegraph:
Style Underperformer:
Sector Underperformers:
- 1) Disk Drives -3.2% 2) Networking -1.2% 3) Medical Equipment -.84%
Stocks Falling on Unusual Volume:
- CVA, ACAT, KFN, CAM, SYMC, NVDQ, EME, AKAM, CRI, TKR, CSH, ORLY, VNTV, TRIP, MGLN, VCI, INFN, CDNS, UA, FNSR, SLAB, EME, SUSQ, VAR, ALDW, CIEN and CRI
Stocks With Unusual Put Option Activity:
- 1) CAM 2) CCL 3) MMM 4) SYMC 5) CIEN
Stocks With Most Negative News Mentions:
- 1) BAC 2) TKR 3) RMBS 4) SUSQ 5) FIO
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold & Silver +3.20% 2) Homebuilding +2.10% 3) Gaming +1.65%
Stocks Rising on Unusual Volume:
- VOYA, BABY, RDWR, TCBI, LOGI, BCO, MMSI, MCK, NXPI, ESI, CAKE, TSCO, SHPG, GNRC, FOE, EQIX, AEM, CLGX, RRD, CLGX, MDSO, ACAD, NOW, PCP, PHM, RCL, EVR, ORI, TEX, FBHS, SIX, MCK, LAZ, RPRX, CTXS, FANG, TER, EXPD and MKSI
Stocks With Unusual Call Option Activity:
- 1) AKAM 2) ITB 3) MCK 4) SYMC 5) FFIV
Stocks With Most Positive News Mentions:
- 1) G 2) F 3) LUV 4) LNKD 5) SCTY
Charts:
